300,000 tons of palm oil stuck at PQ: Cooking oil, ghee shortage likely: FPCCI

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has warned of a potential cooking oil and ghee shortage during the upcoming month of Ramadan, as approximately 300,000 tons of palm oil remains stuck at Port Qasim due to customs clearance issues.

According to the details, FPCCI President Atif Akram reported that the newly implemented faceless customs system has severely disrupted the clearance of edible oils, affecting nationwide supply chains.

The delayed clearance has resulted in demurrage charges of $50-60 per ton on stranded vessels.

“Cooking oil prices have already increased by Rs. 10 per kilogram over the past week,” Akram stated. “If the situation persists, we could see prices surge by Rs 25-30 per kilogram during Ramadan.”

The crisis has begun to have international repercussions, with Indonesia and Malaysia reportedly halting further shipments to Pakistan, according to FPCCI Vice President Nasir Khan.

He explained that while the new faceless system works effectively for containerized cargo, it has proven problematic for bulk cargo operations.

Sheikh Omar Rehan, Chairman of the Pakistan Vanaspati Manufacturers Association (PVMA), revealed that 10-12 vessels are currently waiting in the channel at Port Qasim. “Our factories’ existing stocks of edible oil are rapidly depleting,” he warned. “If clearances aren’t processed within the next 2-3 days, prices will rise sharply, and next month’s shipments will face delays.”

Industry leaders are calling for the immediate restoration of the previous clearance system to prevent a nationwide shortage of essential cooking oils during the holy month of Ramadan.

The situation has already cost the industry millions of rupees in damages, with fears of more severe economic implications if the issue remains unresolved.

Copyright Business Recorder, 2025